No matter how hard you search for the best money market rates, you are not going to find anything very high right now. This is a bad time for someone who lives off a fixed income and relies on interest income for his or her survival. Retired people usually are the first ones you think of in this category, as their only two potential income sources are Social Security and investment income.
With interest rates so low, there is no safe place for retirees or anyone to put their money and make money. This is why retirees, in addition to everyone else, are also having a tough time in this atrocious economy. Older people should not have their money in the stock market because there is not enough safety. They need a place where they can park their money, not worry about losing it, and get something back in return.
The best money market interest rates are usually going to be lower than CD rates or government bonds. This is because the money you put in a money market account is not locked up like it is with a CD. Most money market accounts allow you to make periodic withdrawals and you can take all of it out at any time. This means you get a lower interest rate than some other investment vehicle like a CD where you agree to leave the money in for a predetermined length of time.
People use money market accounts in conjunction with stock portfolios as a place to park their money that is not invested in stocks. If you are one of the lucky ones that has money to invest, right now you will not be finding rates that give you much in return. No matter how long you search the Internet, you will not find rate that are anywhere near what they were 3 or 4 years ago.
If you want to take a little risk you can try something called social lending. With social lending, you are lending money to another person rather than a banking institution. You do this through the Internet and you will get a much better rate of return, usually upwards of 6%. There is more risk though, as there must be, because the person could default on the loan. It is worth looking into though, if you are willing to accept the added risk to get a better rate.
With interest rates so low, there is no safe place for retirees or anyone to put their money and make money. This is why retirees, in addition to everyone else, are also having a tough time in this atrocious economy. Older people should not have their money in the stock market because there is not enough safety. They need a place where they can park their money, not worry about losing it, and get something back in return.
The best money market interest rates are usually going to be lower than CD rates or government bonds. This is because the money you put in a money market account is not locked up like it is with a CD. Most money market accounts allow you to make periodic withdrawals and you can take all of it out at any time. This means you get a lower interest rate than some other investment vehicle like a CD where you agree to leave the money in for a predetermined length of time.
People use money market accounts in conjunction with stock portfolios as a place to park their money that is not invested in stocks. If you are one of the lucky ones that has money to invest, right now you will not be finding rates that give you much in return. No matter how long you search the Internet, you will not find rate that are anywhere near what they were 3 or 4 years ago.
If you want to take a little risk you can try something called social lending. With social lending, you are lending money to another person rather than a banking institution. You do this through the Internet and you will get a much better rate of return, usually upwards of 6%. There is more risk though, as there must be, because the person could default on the loan. It is worth looking into though, if you are willing to accept the added risk to get a better rate.
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